Latest news with #ZEVmandate
Daily Mail
05-08-2025
- Automotive
- Daily Mail
New car sales stall as buyers 'delay' EV purchases on discount updates
New car sales fell 5 per cent last month as motor industry bosses said Britons had 'delayed' purchases of electric vehicles as they awaited confirmation of Government-supplied discounts. The Society of Motor Manufacturers and Traders (SMMT) on Tuesday confirmed that 140,154 new cars were registered in July, down from 147,517 on the same month in 2024. Sales of new petrol, diesel and conventional hybrid cars all stalled, falling 15 per cent, 8 per cent and 11 per cent respectively. And while plug-in hybrid registrations were up a third, growth in electric car demand eased to just 9 per cent year-on-year. The SMMT pointed to the Government's Electric Car Grant (ECG) announcement last month, which promises to slash the price of some new EVs by up to £3,750. However, details of which models will be eligible for the scheme - and how much money will be knocked off their recommended retail price - has only started to filter through this week. SMMT chief executive Mike Hawes blamed July's 'dip' on consumer's awaiting 'certainty' about which EVs are going to have their prices reduced. Despite falling sales of other fuel types, EVs still only held a 21.3 per cent share of the new car market last month. At least 28 per cent of new cars sold by each manufacturer in the UK this year are required to be electric under the Government's Zero Emission Vehicle (ZEV) mandate. With industry execs raising concerns about achieving the mandate's annually increasing targets, ministers last month announced the return of EV purchase subsidies in the hope that reduced pricing will accelerate sales. A £650million taxpayer-backed fund has been confirmed, which will see the grant scheme run until 2029, ministers have said. However, car makers are currently still in the process of applying for eligibility to the ECG, which is only available to battery models priced under £37,000. There are also additional stipulations in regard to qualifying for the scheme based on the emissions and sustainability of EV and battery production for each manufacturer. Only the greenest-made electric models will be eligible for the full £3,750 allowance, while those that don't quite meet the criteria will only be granted £1,500 off their RRPs. Car makers that fall well short of the emissions requirements won't receiving grants at all. The first electric car models eligible for new Government grants were announced on Tuesday. Drivers will be able to save £1,500 with the purchase of new Citroen e-C3, e-C4, e-C5 and e-Berlingo cars. The scheme will enable motorists purchasing a new electric car to save either £1,500 or £3,750, depending on the vehicle's sustainability. SMMT chief executive Mike Hawes said: 'July's dip shows yet again the new car market's sensitivity to external factors, and the pressing need for consumer certainty. 'Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch. 'That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers and our environmental ambitions.' Jon Lawes, managing director at Novuna Vehicle Solutions, said the ECG's 'rushed rollout and limited industry consultation' has caused major confusion for consumers and car makers alike. 'Manufacturers are scrambling to work out which models apply while consumers are left in limbo, wondering if they'll actually get up to £3,750 in savings – risking a slowdown in demand, particularly in private sales, which continue to lag behind fleets. 'And excluding used EVs is a missed opportunity to improve affordability and buyer confidence.' While brands including Abarth, DS, Fiat and Chinese maker Great Wall Motor will attribute July sales declines in the region of 40 to over 90 per cent on the grants decision, Tesla - which is not eligible for subsidies due to all its cars being over £37k - posted a huge 60 per cent fall in registrations last month. It comes as the backlash against Elon Musk has seen sales of Tesla cars plummet across Europe in 2025. The SMMT slightly upgraded its forecast for full-year new car registrations, to 1.9 million. Registrations in 2024 reached 1.95 million. EVs are forecast to hold a full-year market share of 23.8 per cent - more than 4 percentage points below the ZEV mandate's requirement. Sue Robinson, chief exec at the National Franchised Dealer Association, which represents hundreds of showrooms up and down the UK, said: 'We expect electric vehicles sales to continue to increase as a result of the Government's Electric Car Grant, however they remain someway off the ZEV Mandate targets for 2025. 'Once the consumer has a clear understanding of the ECG and manufacturers have applied the grant discount of £3,750, an uptake in registrations should increase.' Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said the grant has provided a 'much-needed boost' for consumer interest in new electric cars, with EV consideration up 10 percentage points on Auto Trader. But the unveiling of the initiative on July 14 explains why it was a 'slow' month for sales as buyers 'wait to see just which models will get what level of grant'. He added that discounts – either through the grant or by brands cutting prices themselves – will 'trickle through to EV sales in the coming months'. Also driving down sales last month was a 6.5 per cent fall in fleet registrations, while private purchases fell less significantly by only 3 per cent. In terms of the most popular models, Ford's Puma and Kia's Sportage continue to dominate the market. Over 4,400 examples of each were snapped up last month, extending their lead at the top of the 2025 sales charts.
Daily Mail
05-08-2025
- Automotive
- Daily Mail
New car sales stall in July: Buyers 'delayed' EV purchases awaiting Government to confirm discounts
New car sales fell 5 per cent last month as motor industry bosses said Britons had 'delayed' purchases of electric vehicles as they awaited confirmation of Government-supplied discounts. The Society of Motor Manufacturers and Traders (SMMT) on Tuesday confirmed that 140,154 new cars were registered in July, down from 147,517 on the same month in 2024. Sales of new petrol, diesel and conventional hybrid cars all stalled, falling 15 per cent, 8 per cent and 11 per cent respectively. And while plug-in hybrid registrations were up a third, growth in electric car demand eased to just 9 per cent year-on-year. The SMMT pointed to the Government's Electric Car Grant (ECG) announcement last month, which promises to slash the price of some new EVs by up to £3,750. However, details of which models will be eligible for the scheme - and how much money will be knocked off their recommended retail price - has only started to filter through this week. SMMT chief executive Mike Hawes blamed July's 'dip' on consumer's awaiting 'certainty' about which EVs are going to have their prices reduced. Despite falling sales of other fuel types, EVs still only held a 21.3 per cent share of the new car market last month. At least 28 per cent of new cars sold by each manufacturer in the UK this year are required to be electric under the Government's Zero Emission Vehicle (ZEV) mandate. With industry execs raising concerns about achieving the mandate's annually increasing targets, ministers last month announced the return of EV purchase subsidies in the hope that reduced pricing will accelerate sales. A £650million taxpayer-backed fund has been confirmed, which will see the grant scheme run until 2029, ministers have said. However, car makers are currently still in the process of applying for eligibility to the ECG, which is only available to battery models priced under £37,000. There are also additional stipulations in regard to qualifying for the scheme based on the emissions and sustainability of EV and battery production for each manufacturer. Only the greenest-made electric models will be eligible for the full £3,750 allowance, while those that don't quite meet the criteria will only be granted £1,500 off their RRPs. Car makers that fall well short of the emissions requirements won't receiving grants at all. Despite falling sales of other fuel types, battery electric vehicles (BEVs) still only held a 21.3% share last month. At least 28% is required for the Government's ZEV mandate in 2025 The first electric car models eligible for new Government grants were announced on Tuesday. Drivers will be able to save £1,500 with the purchase of new Citroen e-C3, e-C4, e-C5 and e-Berlingo cars. The scheme will enable motorists purchasing a new electric car to save either £1,500 or £3,750, depending on the vehicle's sustainability. SMMT chief executive Mike Hawes said: 'July's dip shows yet again the new car market's sensitivity to external factors, and the pressing need for consumer certainty. 'Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch. 'That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers and our environmental ambitions.' While brands including Abarth, DS, Fiat and Chinese maker Great Wall Motor will attribute July sales declines in the region of 40 to over 90 per cent on the grants decision, Tesla - which is not eligible for subsidies due to all its cars being over £37k - posted a huge 60 per cent fall in registrations last month. It comes as the backlash against Elon Musk has seen sales of Tesla cars plummet across Europe in 2025. The SMMT slightly upgraded its forecast for full-year new car registrations, to 1.9 million. Registrations in 2024 reached 1.95 million. EVs are forecast to hold a full-year market share of 23.8 per cent - more than 4 percentage points below the ZEV mandate's requirement. Tesla - which is not eligible for the Government grant due to all its cars being over £37k - posted a huge 60% fall in registrations last month In terms of the most popular models, Ford's Puma and Kia's Sportage continue to dominate the market Ian Plummer, commercial director at online vehicle marketplace Auto Trader, said the grant has provided a 'much-needed boost' for consumer interest in new electric cars, with EV consideration up 10 percentage points on Auto Trader. But the unveiling of the initiative on July 14 explains why it was a 'slow' month for sales as buyers 'wait to see just which models will get what level of grant'. He added that discounts – either through the grant or by brands cutting prices themselves – will 'trickle through to EV sales in the coming months'. Also driving down sales last month was a 6.5 per cent fall in fleet registrations, while private purchases fell less significantly by only 3 per cent. In terms of the most popular models, Ford's Puma and Kia's Sportage continue to dominate the market. Over 4,400 examples of each were snapped up last month, extending their lead at the top of the 2025 sales charts.
Auto Express
21-07-2025
- Automotive
- Auto Express
The Electric Car Grant has shot the UK car industry in the foot
Talk about a great way to ruin good news. With electric car take-up growing far more slowly than required to hit the Government's ZEV mandate targets, the car industry has been crying out for incentives to help boost interest in what is still very much new tech to most drivers. Advertisement - Article continues below So it's impressive to do what a whole sector has been calling for but still shoot yourself in the foot with a scheme so complicated that no-one understands how it's going to work, or which cars will be eligible, days after it's announced. It's a shambles, or as one senior UK car industry exec put it to me last week, a 'flipping nightmare'. I also hear that the E-mail address that manufacturers need to use to register their cars wasn't even working when the announcement of the scheme went live. Then there's the issue of cars just over the £37,000 threshold, which is oddly close to, yet not the same as the Government's VED expensive-car cut-off of £40k. Brands will be frantically recalculating to see how many of the 15 or so cars within £3,000 of the £37k line could be reduced in price to become eligible. That's if they jump through the required eco hoops to make the cut for £3,750 or £1,500 grants. Renault's Scenic dropped by £200 within 48 hours of the announcement to be a fiver under the threshold. Provided Renault ticks those secret eco boxes. We've ended up with a scheme seemingly designed with what some might see as the noble aim of helping European brands to compete with Chinese rivals under the guise of environmental credentials. It seems – although any level of actual detail or evidence of a full plan from the Department for Transport would be helpful – that the environmental aspect of the grant is designed to increase transparency and encourage more local production. But because the policy apparently wasn't fully formed when it was announced, we don't really know. That causes a ripple through the market. EV purchases dived through the floor in the days following the announcement as buyers wait, potentially for weeks, to see if their prospective new EV gets a whopping discount. So the Government's move to boost EV sales could have harpooned them in the short term. Which is careless. Buy a car with Auto Express. Our nationwide dealer network has some fantastic cars on offer right now with new, used and leasing deals to choose from... Find a car with the experts Range Rover's secret mid-size EV: Inside its £500m factory Range Rover's secret mid-size EV: Inside its £500m factory We take an exclusive look inside JLR's revamped Liverpool site as the brand gears up for EV production Car Deal of the Day: The Audi A3 Saloon may be posh but not at this price Car Deal of the Day: The Audi A3 Saloon may be posh but not at this price It's posh, well appointed, and refined to drive – the Audi A3 Saloon is our Deal of the Day for July 18 Chinese cars will take over as Britain's best sellers Chinese cars will take over as Britain's best sellers With a dramatic rise in sales, Mike Rutherford thinks it's only a matter of time before Chinese cars outsell all other countries in the UK
The Guardian
06-07-2025
- Automotive
- The Guardian
UK carmakers on track to meet EV sales target despite the intense lobbying push to lower quota
Carmakers are on track to meet existing UK electric car sales targets despite having successfully lobbied the government to water them down. Electric car sales made up 21.6% of sales in the first half of 2025, only marginally below the 22.06% share needed to meet existing rules once concessions are taken into account, according to an analysis by New AutoMotive, a thinktank. The Conservative government under Rishi Sunak brought in the zero-emission vehicle (ZEV) mandate. It forced carmakers to sell an increasing proportion of electric cars or face steep fines of up to £15,000 for every vehicle above their fossil fuel quota. However, in April the business secretary, Jonathan Reynolds, confirmed the Labour government would relax the rules after an intensive lobbying campaign by the UK car industry against the policy. Vauxhall maker Stellantis blamed its decision to close its Luton van factory on the mandate, although earlier comments by executives appeared to undermine that argument. Carmakers are aiming for a headline target of 28% electric sales to avoid fines this year, but 'flexibilities' within the rules mean the effective target – as calculated by New AutoMotive – is much lower. That is because manufacturers are allowed to borrow electric sales from later years and to gain credit for cutting emissions by selling more hybrids. After the government climbdown manufacturers are to be given more freedom on how they meet their yearly targets and to face lower fines. Ben Nelmes, chief executive of New AutoMotive, said: 'Carmakers are within touching distance of their targets for 2025 before taking into account the government's decision to weaken the targets for this year. 'This impressive progress should reassure ministers that ambitious targets spur the innovation and dynamism the UK needs to achieve net zero and get ahead in the global shift towards electric vehicles.' Weakening the rules could benefit individual carmakers in particular. New AutoMotive's analysis suggests that Japanese carmaker Nissan is the farthest away from what it needs to achieve in 2025, as it waits for its factory in Sunderland in northern England to start production of its new Leaf electric car. Toyota and JLR, maker of the Jaguar and Land Rover brands, are also well behind their effective targets. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The decision to weaken the targets is expected to mean significant extra carbon emissions, despite government claims that the impact would be 'negligible'. The Society of Motor Manufacturers and Traders chief executive, Mike Hawes, said that with one-in-four new car buyers choosing an EV last month, the market was moving forward 'but not at the pace needed'. 'The headline figures belie the fact that just 13% of private buyers have gone fully electric this year, with growth driven by fleets which benefit from compelling fiscal incentives,' said Hawes. 'The lack of natural demand among private consumers has forced manufacturers into unsustainable discounting and led them to seek increased regulatory flexibilities to avoid the double whammy of having to incentivise sales and pay punitive fines.' Britons were wary of going electric for a number of reasons, including higher vehicle costs and an inconsistent and expensive array of public charge points, Hawes said, adding: 'The best way to encourage drivers to trade in their older, more polluting vehicles for new zero emission ones would be for government to emulate other countries and reintroduce the compelling purchase incentives it once provided.'
CTV News
03-07-2025
- Automotive
- CTV News
Local mayors push for realistic EV sales targets to support automakers and protect jobs
The newly formed Simcoe County Auto Mayors Association is calling on the federal government to adopt more realistic electric vehicle (EV) sales targets and expand Canada's Zero-Emission Vehicle (ZEV) mandate to include non-plug-in hybrid vehicles - a move it says would support Canadian auto manufacturers and protect local jobs. The call comes after Prime Minister Mark Carney met with the automotive sector CEOs Wednesday morning to discuss U.S. tariffs and ways to protect Canadian supply chains from the trade war with the United States. A recent slowdown in electric vehicle (EV) sales, along with the imposed U.S. tariffs, is having an impact locally. Communities in Simcoe County are feeling the pinch after Honda's decision to delay construction of its $15 billion EV and battery plant in Alliston by at least two years. The auto industry is warning the government that current EV sales targets are too ambitious and not realistic, asking for a more practical approach to growing the market. To maximize their goals, local mayors met with auto sector leaders and sent a formal letter to the prime minister and honourable ministers to revise the ZEV sales goals. In the letter, they ask that non-plug-in hybrids to be included in the ZEV mandate and given full credit toward meeting the targets. Non-plug-in hybrids combine a gasoline engine with an electric motor and battery and do not require external charging. 'The Non‐Plug in Hybrids should earn a full compliance credit and should not be treated differently from the other eligible vehicles under the mandate," the letter states. 'This will support Canadian auto manufacturers while providing Canadian consumers an 'on‐ramp' away from traditional gas‐powered vehicles and would serve as a critical bridge to the long‐term goal of full electrification for Non‐Plug in Hybrids as fully eligible vehicles towards achieving the targets." Honda has been a major employer in Simcoe County for decades, employing about 4,200 people directly and supporting another 30,000 jobs across the chain. Its impact extends throughout Simcoe County supporting local parts suppliers, infrastructure projects, and workforce training. 'Allowing non-plug-in hybrids to be part of the ZEV mandate will help stabilize local economies, protect jobs, and strengthen Canada's automotive industry during this difficult time,' the mayors wrote in the letter. Most ZEV-qualified vehicles today are imported. The auto mayors association states that as the targets increase, Canadian-made vehicles risk being pushed out of the market. That means a missed opportunity to grow manufacturing here at home. 'With the increasing targets, the mandate is expected to further displace Canadian made vehicles, which the local association says could miss key opportunities to bolster domestic manufacturing,' the letter continued. Local mayors say they have heard from auto suppliers with ties to U.S. companies that production is already shifting from Canada to the U.S., resulting in job losses and fewer investments here at home. Many Canadian auto plants already make non-plug-in hybrids or could do so with minimal changes, according to the association. If these vehicles aren't included in the ZEV mandate, members of the Simcoe County Auto Mayors Association feel it could hurt the competitiveness of Canada's auto industry at a time when it's already facing challenges. 'By supporting non-plug-in hybrid production in Canada, the government can protect jobs, strengthen the economy, and help build a more resilient, self-sufficient auto sector,' the mayors stated in closing. The Simcoe County Auto Mayors Association consists of municipal leaders including New Tecumseth Mayor Richard Norcross, Midland Mayor Bill Gordon, Penetanguishene Mayor Doug Rawson, Bradford Mayor James Leduc, Clearview Mayor Doug Measures, Ramara Mayor Basil Clarke, Collingwood Mayor Yvonne Hamilton, and Innisfil Mayor Lynn Dollin.
